Cheat Sheet for Business law
Chapter 19: Construction of a contract
Representations: statements of facts that are made by one party before or at the time of making a contract to induce an offeree to enter the contract. *Do not form part of the contract, not actionable at contract law
The parol (oral) evidence rule: Written contracts override oral evidence, as court expects all intention to be contracted.
Collateral contracts: 44. De Lassalle v Guilford [1901]: P and D entered into lease, D assured P drains were in good order. However, drains were fault= house flooded. De: There was a breach of collateral contract in respect to the conditions of the drains
Criteria for enforceability: Statement relied on is promissory, not supported by past consideration, consistent with main contract
45. Hoyts v Spencer [1919]: P sublease premises to D for 4 hours, to terminate need give 4 week notice. Gave similar notice to head lessor instead. De: Verbal agreement and written agreement inconsistent
46. Mendelssohn v Normand [1970]: P requested D to lock car. D said car needs to remain unlock and would lock it immediately after parked. P valuable goods stolen. De: Exclusion clause did not apply, D’s oral statement overrode the contract- which was also a cause for P to enter into a contract
47. Associated Newspapers v Bancks [1951]: Parties enter into contract to print P’s cartoon on P1 newspaper, 2 years into contract, D print on P3. De: Publishing on P1 was a condition of the contract, also why P enter into contract.
Implied terms: 5 conditions must be satisfied- 1) Reasonable, Necessary, Obvious, Clear expression, doesn’t contradict express term
Terms implied by custom or usage: 51. Pelly v Royal Exchange Assurance [1757]: P insured his ship and tackle during a voyage. Tackle removed and put in warehouse, fire. Insurance say not within scope of voyage. De: It was normal practice to put voyage in warehouse, implied by custom
Terms implied by the courts: 52. The Moorcock [1889]: D
Representations: statements of facts that are made by one party before or at the time of making a contract to induce an offeree to enter the contract. *Do not form part of the contract, not actionable at contract law
The parol (oral) evidence rule: Written contracts override oral evidence, as court expects all intention to be contracted.
Collateral contracts: 44. De Lassalle v Guilford [1901]: P and D entered into lease, D assured P drains were in good order. However, drains were fault= house flooded. De: There was a breach of collateral contract in respect to the conditions of the drains
Criteria for enforceability: Statement relied on is promissory, not supported by past consideration, consistent with main contract
45. Hoyts v Spencer [1919]: P sublease premises to D for 4 hours, to terminate need give 4 week notice. Gave similar notice to head lessor instead. De: Verbal agreement and written agreement inconsistent
46. Mendelssohn v Normand [1970]: P requested D to lock car. D said car needs to remain unlock and would lock it immediately after parked. P valuable goods stolen. De: Exclusion clause did not apply, D’s oral statement overrode the contract- which was also a cause for P to enter into a contract
47. Associated Newspapers v Bancks [1951]: Parties enter into contract to print P’s cartoon on P1 newspaper, 2 years into contract, D print on P3. De: Publishing on P1 was a condition of the contract, also why P enter into contract.
Implied terms: 5 conditions must be satisfied- 1) Reasonable, Necessary, Obvious, Clear expression, doesn’t contradict express term
Terms implied by custom or usage: 51. Pelly v Royal Exchange Assurance [1757]: P insured his ship and tackle during a voyage. Tackle removed and put in warehouse, fire. Insurance say not within scope of voyage. De: It was normal practice to put voyage in warehouse, implied by custom
Terms implied by the courts: 52. The Moorcock [1889]: D